Friday, January 08, 2010
Netflix Realizes A Nickel Is Cheaper Than 44 Cents
From NewTeeVee Netflix Everywhere
According to Netflix CEO Reed Hastings at NewTeeVee Live, the company spends about $600 million a year on postage for its mail-order business, but the cost of streaming a video title is much cheaper than delivering a DVD by mail — about 5 cents a gig for bandwidth — or about a nickel per movie.
The U.S.Postal Service should realize they will be losing a $600m client soon. I am curious as to how much the Kindle has reduced Amazon's(and others) mailing costs.
Other than the movie rental, music and book industry, what other industries will make the shift to electronic delivery versus physical delivery?
What other products can be digitized and delivered electronically?
Will there ever be a "Fedex of the Net"?
Would you pay for extra speed to have something delivered, and if so, what?
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